Free Customer Lifetime Value Calculator
What is a customer really worth - not on one order, but over the whole relationship? Enter the buying pattern, and get revenue CLV, profit CLV, and the CLV:CAC ratio that says whether your marketing pays for itself. Free, no sign-up.
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Why CLV changes how you spend
Judged on one order, a 25,000 customer isn't worth much effort. But if she orders four times a year and stays three years, she's a 300,000 relationship - 90,000 of profit at a 30% margin. Suddenly a 15,000 acquisition cost, a thank-you call, or free delivery on her next order all look like obvious investments rather than expenses.
That's the whole point of the number: it moves your attention from the transaction to the relationship - and it puts a hard ceiling on what you can afford to spend acquiring the next customer.
Customer Lifetime Value FAQ
How is customer lifetime value calculated?
The simple version: average order value x orders per year x years the customer stays. A customer who spends 25,000 per order, four times a year, for three years is worth 300,000 in revenue. Add your gross margin and the calculator also shows the profit version - the number that actually matters for spending decisions.
Should I use revenue CLV or profit CLV?
Profit, whenever you can. Revenue CLV flatters every business - you can't spend revenue on acquiring customers, only profit. A 300,000 revenue CLV at a 30% margin is 90,000 of profit, and that's the ceiling on what a customer is worth paying for.
What is a good CLV to CAC ratio?
The widely used benchmark is 3:1 - a customer should return at least three times what they cost to acquire. Below 1:1 you're paying to lose money. Far above 5:1 might mean you're under-investing in growth. Treat it as a compass, not a law: the right ratio depends on your cash position and how fast the CLV is actually collected.
How do I increase customer lifetime value?
Three levers, in the order they usually pay: get customers to come back (retention beats acquisition on cost), raise the average order (bundles, add-ons, delivery thresholds), and keep them longer (service quality, reminders, credit terms for good payers). A small retention gain compounds across every future year.
Where do I get the input numbers?
From your sales records, not gut feel. Average order value = total sales ÷ number of orders. Frequency = orders ÷ unique customers, per year. Lifespan is the hardest - look at when your oldest regulars first bought. If you invoice through Growpins Ledger, your client records already hold each customer's full purchase history.
How is this different from a Growpins Ledger account?
This calculator works on averages you estimate. A free Growpins Ledger account records every invoice per client, so you can see each customer's real value to date - who your 300,000 customers actually are, and who quietly stopped ordering six months ago.
Want real CLV, per customer, from real invoices?
A free Growpins Ledger account records every invoice against every client, so you can see what each customer has actually been worth - and spot the regulars who've gone quiet. Built by the team behind Growpins, founded by Dokun Bamigboye.
Know your best customers - sign up freeWorking the acquisition side? Pair this with the ROI Calculator, or browse all free tools.